Grenada COVID-19 Crisis Response and Fiscal Management DPC

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The development objective of the COVID-19 Crisis Response and Fiscal Management Development Policy Credit in Grenada supports Grenada’s response to the COVID-19 crisis in the short term and enhances long-term economic management and resilience through three pillars. Pillar 1 strengthens the capacity of the health and social protection systems to respond to the health threat posed by COVID-19, and provides a safety net for workers and their families who have been displaced by the economic fallout of the crisis. Pillar 2 mitigates the economic effects of the crisis on households and firms by saving jobs, through wage subsidies to vulnerable workers in the tourism and agricultural sectors, and boosting the viability of micro, small and medium-sized enterprises (MSMEs) through subsidized credit lines to help them weather the crisis and build resilience for a stronger recovery. Pillar 3 looks beyond the immediate crisis and supports the Government of Grenada’s structural reform measures to strengthen public financial management, governance, and transparency to help Grenada stay the course of fiscal responsibility that it had already embarked upon. Actions include enhancing debt transparency through the regular publishing of debt reports, strengthening public investment and asset management, and improving financing reporting and auditing standards. Such reforms are consistent with the capacity limitations of the country made worse by the crisis.